Answer:
Tab's realized gain = $110,000
Recognized gain = $5,000
The basis of the newly acquired real estate = $135,000
Explanation:
Data provided in the question:
The stock transferred has an adjusted basis = $45,000
Fair market value of stock = $50,000
The real estate transferred has an adjusted basis = $85,000
Fair market value of real estate transferred = $190,000
Fair market value real estate acquired = $240,000
Now,
Tab's realized gain
= Fair market value - adjusted basis of real estate transferred - adjusted basis of stock transferred
= $240,000 - $85,000 - $45,000
= $110,000
Recognized gain
= Fair market value of stock - Adjusted basis of stock transferred
= $50,000 - $45,000
= $5,000
The basis of the newly acquired real estate
= Fair market value real estate acquired - Deferred gain
also,
Deferred gain = realized gain - Recognized gain
= $110,000 - $5,000
= $105,000
thus,
The basis of the newly acquired real estate
= $240,000 - $105,000
= $135,000
